Longtime Delaware Statutory Trust Investors Choose Kay Properties Over Others for Their 1031 Exchange
LOS ANGELES, June 25, 2020 (GLOBE NEWSWIRE) -- Many clients like to work with Kay Properties and Investments for access to the 1031 DST marketplace available at www.kpi1031.com. Others like it because of the depth of real estate and DST 1031 industry knowledge Kay Properties is able to bring to the table. While still others value the extensive due diligence provided by the Kay Properties team of analysts. These clients saw that immediately.
Alex Madden, Vice President of Kay Properties, explained: “These clients were a husband and wife who already had completed a large exchange into DSTs (Delaware Statutory Trusts) prior to being introduced to Kay Properties and Investments. Due to significant appreciation of their original properties they had very low loan-to-values (LTVs). They completed their original DST 1031 exchanges with a local financial planner who never explained to them (possibly because he didn’t understand the concept) the long-term impact of taking on more debt in a 1031 exchange via DSTs with higher LTVs than the properties that they sold. The financial planner also only had access to one DST sponsor and, as a result, by the time we met them the clients had taken on substantially more debt than their 1031 required, which greatly increased their risk, and they were overconcentrated in a single DST sponsor’s offerings.”
Senior Vice President Chay Lapin added: “We evaluated their current DST portfolio and discussed the potential pros and cons of adding debt in a 1031 exchange and the risks of using too much leverage in an exchange. After extensive discussions our clients determined they did not want to take on any additional debt as they did not want to further increase their risk. Over four subsequent 1031 exchanges with our clients, we have helped them diversify into DSTs with five different sponsors and six different asset classes — all while avoiding taking on any more debt than was necessary for the 1031 exchange. This is another example of a situation whereby our expertise in completing thousands of DST 1031 exchanges was able to bring extreme value to our clients.”
About Kay Properties and www.kpi1031.com
Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over $15 billion of DST 1031 investments.
* Diversification does not guarantee profits or protect against losses.
* This is an example of the experience of one of our clients and may not be representative of the experience of other clients. Past performance does not guarantee or indicate the likelihood of future results.
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior to investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities.
Media contact for more information:
Cary Brazeman
310-205-3590
cary@crelix.com
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